In a Two-Nation, Two-Good World, Which of the Following Statements

question 130

Multiple Choice

In a two-nation, two-good world, which of the following statements is true?

• A) One nation cannot possibly have an absolute advantage over the other nation in both products
• B) If one nation as the comparative advantage in one product, then the other nation would have the comparative advantage in the other product
• C) One nation will always have the comparative advantage over the other nation in one of the products
• D) If one nation has the absolute advantage in one product, then the other nation would have the absolute advantage in the other product

---

Definitions:

Withdrawals

The process of removing funds from an account, typically from a bank or investment account.

Retire

The act of leaving one's job and ceasing to work, typically due to reaching a certain age or for health reasons.

Beginning

Beginning, in financial terms, often refers to the starting point or initial value of an account, inventory, or financial statement at the onset of a period.

Nominal Annual Interest Rate

The percentage of interest charged on a loan without adjustment for the effect of compounding or inflation over a period of a year.